A new methodology with some issues
Source: TH
Relevance: GS 2: Governance.
Mains: Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (2023)
Overview of HCES 2022-23
- Release of Key Findings: The NSS Office shares findings from the Household Consumption Expenditure Survey (HCES) 2022-23, presenting nationwide average household monthly per capita consumption expenditure (MPCE) for rural and urban areas.
- State-level Estimates: Detailed estimates for each State and Union Territory (UT) in rural and urban sectors.
Changes and Implications
- Updated Coverage: Reflects recent consumption trends with an expanded item list.
- Questionnaire Restructure: Split into three sections, enhancing accuracy, particularly for food, consumables, services, and durable goods.
- Methodological Challenges: Changes in village and urban block stratification may affect sample representation, especially concerning affluent households.
Methodological Issues
- Questionnaire Splitting Impact: Hinders comparison with past data, necessitating a reconsideration of the approach.
- Recommendation: Return to a single-visit, traditional methodology for improved comparability.
- Proposal for Rich Household Frame: Utilize administrative data to identify affluent households for dedicated surveys, ensuring their adequate representation.
Importance and Recommendations
- Data Gap Bridging: HCES 2022-23 addresses long-standing data deficiencies, aiding poverty estimation and policy formulation.
- Methodological Improvement: Vital for ensuring data reliability and comparability.
- Enhanced Representation: Additional modules and focused surveys can improve data quality across different socioeconomic segments.
Conclusion
- HCES 2022-23 fills crucial gaps, shedding light on consumption patterns.
- Methodological alterations pose hurdles to data comparability and sample accuracy.
- Addressing these challenges is pivotal for robust estimates and informed policymaking.
